Dubai’s property market is making waves on the global stage, and leading the charge are investors from China and Hong Kong, whose appetite for Dubai’s real estate has never been stronger.

According to the latest insights from Juwai IQI, Chinese buyer inquiries for UAE properties jumped an impressive 28% in the first quarter of 2025 compared to last year. This surge comes as part of a broader influx of foreign capital into the UAE, with overseas investors — including buyers from China, the US, the UK, France, Kazakhstan, and Russia snapping up over $2 billion worth of Abu Dhabi real estate in 2024, marking a massive 125% increase year over year.

Specifically in Dubai, Chinese investors alone accounted for 8% of all foreign real estate investments in 2024, and experts believe that number will only rise this year.

Why Dubai?

What’s driving this momentum? Dubai offers a perfect storm of advantages:

• Investor-friendly policies
• Strong economic fundamentals
• High-yield opportunities across both residential and commercial sectors

In fact, Dubai’s residential market saw rents and sales prices rise by 16% and 18%, respectively, last year. Government initiatives such as long-term visas, relaxed ownership laws, and attractive residency options have fueled this demand.

Cushman & Wakefield Core projects office rents to increase another 10–12% in 2025, reinforcing Dubai’s status as a global investment hotspot.

Major Deals Turning Heads

One standout example of this trend is Gaw Capital’s landmark acquisition: the Hong Kong-based firm purchased a residential building at Mamsha Gardens on Abu Dhabi’s Saadiyat Island for Dh586 million. This marks Gaw Capital’s first investment in the UAE and highlights growing institutional interest from Asia.

Aldar Properties, the UAE’s largest developer, revealed that 87% of its Q1 2025 sales were to international buyers, with Chinese and Hong Kong investors alone contributing Dh1.3 billion — up from Dh1.5 billion across all of 2024. That’s a 30x increase from just two years ago!

Christina Gaw, Managing Principal of Gaw Capital (which oversees $34.4 billion in assets), called the Mamsha Gardens deal a “landmark investment” showcasing confidence in the Middle East’s growth. Humbert Pang, Gaw Capital’s Head of China, added that the UAE’s economic diversification and rising expat demand have transformed market sentiment.

Other major players, like Black Spade Capital — the family office of casino tycoon Lawrence Ho — have also jumped in, investing in Hong Kong-based firms focused on Middle Eastern real estate opportunities.

Luxury Segments on Fire

Dubai’s luxury real estate is particularly hot:

• Average luxury property transaction in Q1 2025: $743,000
• Foreign buyers’ average spend (including Chinese investors): $1.12 million

High-end residential properties, prime offices, and logistics assets are seeing especially strong demand, offering immediate income potential and benefitting from Dubai’s transparency, regulatory stability, and global appeal.

The Road Ahead: Dubai’s Vision 2033

Dubai isn’t slowing down. The ambitious Dubai Real Estate Strategy 2033 targets a 70% boost in transaction values and aims to raise homeownership to 33% by 2033. With the city’s population expected to hit 4 million by 2026 and off-plan sales already reaching $34.3 billion in the first half of 2024, developments like Emaar South and Jumeirah Lakes Towers are emerging as prime hotspots, especially with infrastructure power plays like Al Maktoum Airport in the mix.

Watch for Market Balance

However, analysts warn that supply pressures are on the horizon: about 182,000 new residential units are expected by 2026. If demand cools, prices could stabilize or dip slightly. Add in regional geopolitical uncertainties, and it’s clear investors will need to keep a sharp eye on market shifts. That said, Dubai’s reputation as a safe haven has historically weathered such headwinds.

As Fadi Moussalli of JLL points out, Dubai’s low-tax regime, safety, and connectivity remain huge magnets for global investors, particularly those from China and Hong Kong.

Final Take

With Asian capital surging into Dubai and heavyweight investors making bold moves, the emirate is solidifying its reputation as a premier global real estate destination. Expect 2025 to be another record-breaking year, as Chinese and Hong Kong buyers continue to play a pivotal role in shaping Dubai’s dynamic and fast-evolving property landscape.